Which of the following would be a consideration in planning a sample for a test of subsequent cash receipts?
　　A. The amount of bad debt write-offs in the prior year.
　　B. The auditor’s allowable risk of assessing control risk is too low.
　　C. The size of the intercompany receivable balance.
　　D. Preliminary judgments about materiality levels.
　　Answer:D
　　D is corrent because the auditor must determine which differences are material and which are not so to determine the size and nature of the sample.
　　A is incorrect because a consideration of bad debt write-offs in the prior year has no apparent benefit in planning a test of this year’s subsequent cash receipts.
　　B is incorrect because testing subsequent cash receipts is often used as a substantive procedure and the risk of assessing control risk too low relates to internal control.
　　C is incorrect because the size of the intercompany receivable balance is not likely to affect the planning of a test of subsequent cash receipts which ordinarily will emphasize cash receipts of year-end receivables.